JTC Quarterly Facilities Report Third Quarter 2009

JTC Quarterly Facilities Report - 1Q09 Full report

Source - JTC

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JTC Quarterly Facilities Report - 1Q09_Full report

JTC Quarterly Facilities Report - 1Q09 Full report

Source - JTC

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MINDY YONG

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Singapore’s ability to integrate people is key in country’s growth

Singapore’s ability to integrate people is key in country’s growth

By Hoe Yeen Nie,

SINGAPORE: Finance Minister Tharman Shanmugaratnam has said Singapore’s ability to integrate people from diverse cultures has been a key driving force behind the country’s growth over the past four decades.

And this will continue to be an asset, as the economy moves into new growth strategies.

Mr Tharman was speaking at the World Design Congress earlier this week.

The Marina Barrage is a dam built across the mouth of the Marina Channel. It is an example, said Mr Tharman, of how Singapore has blended its own ideas with innovations borrowed from other societies.

“What are we good at? We’re good at pulling people together, and some industries thrive on that, pulling people together,” he said.

“I don’t think we ever realised that 40 years after we started, it would turn out to be a great asset, tremendous asset in a knowledge-based world.”

Mr Tharman, who was formerly the Education Minister, said that it is people who will continue to drive the future of Singapore.

That is why much emphasis has been placed on creating a meritocratic education system.

Mr Tharman said: “In this next phase of growth and development, you need more effervescence that comes up naturally, through the schools, through the polytechnics, the universities, through our technical colleges.

“The whole thrust of educational policy in the last decade and going forward has been to nurture that, give it maximum chance of going up.”

But that, he said, is a “difficult enterprise”.

“That meritocracy, which is our big plus, brings with it naturally a certain standardisation,” Mr Tharman said.

“How do we break out of that? By creating new pathways, and we’re doing it in every public school, offering niches of excellence for kids who’ve got something different.”

Speaking at a convention of design professionals, Mr Tharman outlined some key areas Singapore would like to go into as it navigates itself in a post-crisis world.

One is to create urban solutions, a massive opportunity as Asia undergoes rapid urbanisation.

Mr Tharman said: “It’s a huge challenge, making cities liveable, managing water resources, managing sanitation, keeping the air clean, keeping the place green. It’s a huge challenge, and it’s something Singapore has built up some experience in.”

Singapore too is aiming to take a bite out of the biomedical pie, and here again, Mr Tharman said that it is all about bringing together researchers from different environments.

Singapore is also seeing growing interest from small enterprises from Europe and other parts of the world, which are keen to take advantage of opportunities in the region.

- CNA/ir

Source : Channel NewsAsia - 28 November 2009

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CapitaMalls’ bumper IPO lifts market

CapitaMalls’ bumper IPO lifts market

Its $2b-plus debut is a bonanza after a flat year for new stock listings

By Lee Su Shyan , ASSISTANT MONEY EDITOR

CapitaMalls Asia’s retail mall businesses include Wangjing Mall (first picture) in Beijing, Ion Orchard (second picture) in Singapore and Izumiya Hirakata (above) in Japan’s Osaka prefecture.
THERE was no ignoring the huge CapitaMalls Asia listing this week. After all, it likely pulled in more cash than the total amount raised by the 60 other initial public offerings (IPOs) held since January last year.

The company’s $2 billion-plus stock market debut brought the tally of funds raised to $2.87 billion for this year and outweighing the $1.95 billion raised last year.

It was a headline-making bonanza to end a flat year and while bankers reckon that large IPOs may return next year, no one expects similar-sized blockbusters, given the still-fragile economy.

Without CapitaMalls Asia - ranked by Reuters as the 10th-largest IPO globally this year - the year would have been one of paltry takings.

It also came as a pre-Christmas present as few could have foreseen such a bumper end to a year that started on a weak note.

Wong Partnership’s head of capital markets and corporate department, MsRachel Eng, said: ‘IPOs this year were primarily (offered by) the smaller companies. This is not surprising since major businesses were affected by the global financial crisis.

‘With this, their profit track record will be affected. Further, when equity prices of listed companies are low, there is little incentive for investors to buy IPO stocks.’

There had been only three listings up to June - all on Catalist. Westminster Travel, Japan Foods and Teho International chanced their arms but raised only about $10 million in combined net proceeds.

It took until August for the first mainboard listing: PEC, a firm providing engineering, procurement and construction services, which raised $25 million.

There have been 25 IPOs this year, including CapitaMalls Asia and firms undertaking reverse takeovers.

Just over half the IPOs were on Catalist, a contrast to last year when only 10 Catalist companies listed out of 36 IPOs.

Bankers said the weak markets deterred companies from going public and selling a stake in their enterprise at ‘cheap’ prices.

That may have contributed to the larger proportion of Catalist companies listing. The minimum public float is 15 per cent instead of the 25 per cent required by the mainboard. And they can later move to the mainboard.

The picture is expected to improve next year. London Stock Exchange chief executive Xavier Rolet was quoted by Reuters earlier this week as saying that the pipeline for IPOs ‘appears promising for 2010′.

Shook Lin & Bok partner Robson Lee is cautiously optimistic about the prospects for listings next year, saying: ‘Although there may be some signs of a bubble forming elsewhere in Hong Kong and China, it looks as if the recovery in Singapore will be on a firmer footing next year.’

One thing seems more than likely: the IPOs are set to be bigger.

Wong Partnership’s Ms Eng expects a few large listings, and perhaps some from the Reit sector.

‘For the majority, despite the pick-up in sentiment, their 2009 profit and loss may be weak,’ she added.

‘If so, they may need to wait for their half-year 2010 results to show investors that their business is out of the crisis and is continuing to grow.

‘Ahead of that, if they are reasonably confident, they may start to prepare for their IPOs early next year.’

But there are still a few speed bumps to negotiate before the IPO market is back on easy street. One is that Chinese companies, once the mainstay of the Singapore IPO market, are no longer the force they once were.

The Chinese government’s rules on overseas listings date back to 2006 and are still hampering firms from venturing offshore.

Only eight Chinese companies listed here out of a total of 25 IPOs, compared with 15 in last year’s 36 listings.

Meanwhile, other markets are also wooing Chinese companies.

Malaysia has attracted three Chinese sports shoes manufacturers - XiDeLang Holdings, Xingquan International Sports Holdings and Multi Sports - although all have underperformed their IPO price.

‘The approval process is speedy but thorough,’ said a banker, referring to one of Malaysia’s advantages.

South Korea has also had some success in wooing Chinese companies, while some analysts believe the Thai stock market could see a revival next year.

Also, the valuations offered by the Hong Kong market are consistently stronger than those in Singapore, and it continues to attract many companies.

Dr Ernest Kan, who heads Deloitte and Touche’s offerings group in the region, said that while valuations are an important factor, Singapore has a selling point in its strong corporate governance regime.

Source : Straits Times - 28 November 2009

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Dubai’s debt crisis sparks global sell-off

Dubai’s debt crisis sparks global sell-off
Bank shares savaged as default triggers fears of new financial meltdown
By Fiona Chan
Related Link
THE DUBAI EFFECT
STOCK markets around the world reeled yesterday as investors panicked that the Dubai government’s debt crisis would trigger a fresh financial meltdown.

The spectre of a Gulf emirate plunging into bankruptcy drove investors from Tokyo to London to seek safety in the US dollar and bonds, while dumping riskier assets such as commodities and stocks.

In particular, shares of banks in Asia and Europe were savaged - with HSBC Holdings and Standard Chartered Bank faring the worst in Hong Kong, and ING Group and Royal Bank of Scotland among the biggest losers in Europe. All four have been involved in Dubai World deals.

Dubai’s government investment firm Dubai World shocked markets on Thursday when it asked for a six-month delay in repaying a US$59 billion (S$81 billion) tranche of its total debt of US$80 billion.

The news, which credit rating agency Standard & Poor’s said amounted to a default, recalled Argentina’s sovereign default in 2001, the biggest in history.

The announcement came just hours before the Middle East shut down for a religious holiday. A lack of new information worsened the panic, reports said.

Asian markets took the news harder than European ones yesterday, with reports of Tokyo traders describing the panic as ‘Financial Crisis Part II’.

The Hang Seng Index in Hong Kong plunged 4.8 per cent yesterday, while Japan’s Nikkei 225 Stock Average slumped 3.2 per cent to a four-month low. South Korean shares also closed at a four-month low after falling 4.7 per cent.

In Europe, major markets lost just over 3 per cent in Thursday’s trading. The FTSE 100 index in London closed down 3.2 per cent - its worst one-day fall since March - while Germany’s DAX fell 3.2 per cent and France’s CAC-40 dropped 3.4 per cent. The European markets were down fractionally yesterday after the mid-morning session.

The Dubai news caused panic throughout trading in London, Mr David Jones, chief market strategist at IG Index in London, told The Independent newspaper.

‘The market had been chugging along nicely for the past six months, now this. A lot of people are worried that it is a precursor for more bad news,’ he said.

The Singapore stock exchange was closed yesterday for the Hari Raya Haji holiday, delaying any carnage to when it re-opens on Monday.

Markets in the United States were also closed on Thursday for the Thanksgiving holiday, but the Dow was down about 200 points as soon as markets opened for trading last night.

Dubai, touted as an economic miracle of the Middle East, poured billions of dollars in borrowed money into building huge luxury developments and lavish tourist attractions. Now, investors are worried about the health of banks that lent money to the debt-ridden emirate.

HSBC’s Middle East arm was by far the biggest single foreign lender in the United Arab Emirates (UAE), with outstanding loans of US$17 billion as at the end of last year, according to an Agence France-Presse report. It is not clear how much of this was lent to Dubai.

Stanchart was next with US$7.8 billion owed as at end-2008, and Barclays Bank was third with US$3.6 billion, said AFP.

Citigroup analysts said Japan’s largest banks, Mitsubishi UFJ Financial and Sumitomo Mitsui, had also lent hundreds of millions of dollars to Dubai World.

In Singapore, DBS Bank was mentioned by CLSA analyst Daniel Tabbush as having exposure to Dubai. All three local banks - DBS, UOB and OCBC - have also lent money to Singapore’s South Beach development, a joint project involving City Developments and Dubai World.

But some commentators yesterday cautioned that the selling was overdone.

‘Everyone has gone into panic mode, but this is Dubai. It is not going to send the world into a tailspin,’ Mr Chris Blair, Patersons senior client adviser, said in a Dow Jones report.

All eyes are now on whether Dubai’s richer cousin Abu Dhabi, the capital of the UAE’s seven emirates, will lend a hand. It will not be the first time Abu Dhabi has had to help. It bought US$10 billion in bonds from Dubai in February to ease a cash crunch.

Source : Straits Times - 28 November 2009

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Dubai aftershock ripples through Asian markets

Dubai aftershock ripples through Asian markets

Guessing game in the markets as investors struggle to get a fix on likely extent of fallout

(Tokyo)

ASIAN stock markets tumbled yesterday, with Hong Kong and South Korea down about 5 per cent as fears mounted over the fallout from Dubai’s massive debt problems.

SEEING RED
The benchmark Hang Seng Index fell 4.84 per cent, its sharpest slide this year
It was Asia’s second day of losses and followed a rout in European markets. Banks and construction companies bore the brunt of selling across Asia as investors turn skittish about exposure to Dubai.

In Europe, however, markets regained their poise yesterday. This followed Thursday’s sell-off which saw Europe’s main indexes slide over 3 per cent, with banks, especially those thought to have exposure to Dubai, such as Barclays, HSBC and Standard Chartered, particularly badly hit.

The Dow Industrials was down about 125 points at 10,339.32 in New York yesterday in the early hours a holiday-shortend trading day.

In Hong Kong, jittery investors sold down stocks in HSBC and Standard Chartered. But analysts played down fears of major problems at the two London- based banks, which are heavyweights on the Hong Kong stock exchange with huge operations in the Middle East and Asia.

But their share prices took a hit following Dubai’s shock announcement on Wednesday that it wants creditors to give a six-month breathing space on debts owed by flagship conglomerate Dubai World. Saddled with US$59 billion in liabilities, Dubai World is the state-run investment firm behind Dubai’s sizzling growth over the past 20 years.

Hong Kong’s benchmark Hang Seng Index fell 1,075.91 points, or 4.84 per cent, to 21,134.50 - its biggest tumble this year. HSBC dropped 7.6 per cent to HK$87.00 and Standard Chartered fell 8.6 per cent to HK$185.90.

Hong Kong Financial Secretary John Tsang said that loans extended by the city’s banks to Dubai World and the United Arab Emirates (UAE) overall amounted to less than 0.4 per cent of their total portfolio. ‘The financial problems of Dubai World will not pose any systemic risk to Hong Kong’s banking system,’ he told reporters.

But Louis Tse, director of Value Convergence CEF, said that the two banks should have known about problems in Dubai for some time after the emirate’s debt-fuelled binge on infrastructure spending in recent years. ‘Silence may be golden for the banks. But it is definitely not the case for investors,’ he told AFP.

HSBC’s Middle East arm was by far the single biggest foreign lender in the UAE with outstanding loans of US$17 billion at the end of last year, according to the Emirates Banks Association. Standard Chartered was next with US$7.8 billion owed at the end of 2008. Both HSBC and Standard Chartered Bank declined to comment on their specific exposure to Dubai World.

Ben Potter, analyst at IG Markets in Sydney, said Dubai was not a big enough player in the global economy to merit panic selling, ‘especially given what financials have been through over the last 18 months’.

But, said Richard Morris, investment manager at Constellation Capital Management in Sydney: ‘Dubai is a real shock to the market . . . This will cause a shifting back to a more defensive stance.’

Still, banks’ exposure to a Dubai default pales in comparison to the US$2.8 trillion in write-downs that the International Monetary Fund estimates US and European lenders will have to make between 2007 and 2010 as a result of the credit crisis.

International banks’ exposure to Dubai World could amount to US$12 billion, banking sources told Thomson Reuters LPC.

But it was the fear of the unknown that was driving trade.

In South Korea, the Financial Supervisory Service has said that the country’s financial institutions’ exposure to Dubai was just US$88 million, but shares in KB Financial, Shinhan Financial Group and Woori Finance Holdings all took a hit of around 4 per cent. — Reuters, AFP,

Source : Business Times - 28 November 2009

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Resorts World househunt reaches into HDB heartland

Resorts World househunt reaches into HDB heartland

Property consultants say Sentosa IR is scouting for rental flats for some of its foreign staff

By EMILYN YAP

VISITORS to the Universal Studios theme park in Resorts World at Sentosa (RWS) will soon be able to live out adventures seen in various movies. There will be zones based on films such as Madagascar, Shrek and Jurassic Park, to bring thrill-seekers to a make-believe world far away from home.

For some employees at RWS, being away from home will also be a new adventure. The integrated resort will be hiring a considerable number of foreigners, and it is said to be searching for hundreds of HDB flats to help them settle in. C&H Realty managing director Albert Lu said that RWS is looking for HDB flats to rent, and approached his firm a few months ago to find out about the rental market. RWS did not share many details then, but the number of flats is ‘in the hundreds’, he told BT.

Another property market insider who declined to be named also said that RWS has been ‘aggressively looking for flats to rent’, and is probably in need of ‘a few hundred’ units.

So far, there is no official statement on the number of foreigners that RWS could hire. Overall, it will employ about 10,000 people when it opens next year. RWS

Source : Business Times - 28 November 2009

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